Black Diamond Group renewed and expanded its secured, asset-based revolving credit facility. The renewal extends the maturity of the facility out to Feb. 20, 2030. Concurrently, the facility is being upsized to $425 million with a $75 million uncommitted accordion, from $325 million with an uncommitted accordion of $50 million and expanded to now provide advance rates against categories of rental assets that were previously excluded from the borrowing base.
The interest rate pricing grid remains unchanged. All other major terms and conditions of the facility, including financial covenants, are carried forward and not materially affected by the extension and expansion. As before, Black Diamond is required to maintain a fixed charge coverage ratio of 1.1:1; however, this covenant is only tested under certain circumstances, including when over 90% of the facility is drawn.
“The use of the asset-based credit facility has been instrumental in providing the necessary liquidity and flexibility to continue growing our specialty rental and industrial services businesses over the past six years,” Trevor Haynes, CEO of Black Diamond, said. “This extension and expansion underpins our continued commitment to executing our ambitious plans in line with our long range strategies to further compound our profitable growth and diversify and scale all areas of our business.”
